Capacity Planning and Process Design:

How to generates and how much to produce are two basic aspects of process design. The process design is not only confined to production design but this also supports the marketing strategy of the organization as well. The desired production capacity is closely associated to the production method. Capacity decisions such as how several televisions a new factory should produce every year, how many floor a store should have, etc. have great strategic importance. Moreover, some capacity decisions may be tactical such as how many employees to have for a particular task.